AGC Meisei JV Secures $171M Subcontract from JKC for Ichthys LNG Project

AusGroup subsidiary AGC Industries Pty Ltd, a leading Australian based construction, maintenance services and fabrication company to the oil & gas, mining and industrial sectors disclosed Friday that it has entered into a joint venture with Meisei Industrial Co. Ltd of Japan to form AGC Meisei Joint Venture (AMJV). The joint venture is pleased to announce, it has been awarded a $171.2 million (AUD197 million) contract by JKC Australia LNG Pty Ltd (JKC) on the onshore facilities of the Inpex-operated Ichthys LNG Project, near Darwin, Northern Territory, Australia.

The subcontract scope of work includes; painting, surface protection, fireproofing and insulation works for lead contractor JKC. Work is expected to commence in March 2015 and will continue for 22 months until December 2016. This is the second major contract to be awarded to a subsidiary of AusGroup on the Ichthys Project Onshore LNG Facilities.

The Ichthys LNG Project is a Joint Venture between Inpex group companies (the Operator), major partner Total and the Australian subsidiaries of Tokyo Gas, Osaka Gas, Chubu Electric Power and Toho Gas.

AusGroup CEO and Managing Director Stuart Kenny said “We are pleased to be able to continue our relationship with JKC through this AMJV contract. We look forward to bringing a level of knowledge and expertise to the project backed by 70 years of international insulation experience within Meisei and decades of LNG experience providing insulation and painting services within AGC. This is the second time AGC and Meisei have worked together, previously on a $56 million (AUD 100 million) contract for an LNG train in Western Australia between 2002 - 2004.

This contract underpins AusGroup’s progress towards strengthening its order book as an established service provider to offer a range of skills to the oil & gas sector in an otherwise challenging and changing market. The contract and the proposed acquisition of Ezion Offshore Logistics Hub (Tiwi) and Teras Australia Pty Ltd will enable AusGroup to integrate marine base support and secure further opportunities in the burgeoning oil & gas sector in Northern Australia region.”

With the award of this contract, AusGroup’s order book now stands at $417.2 million (AUD 480 million).


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